Tax Questions Blog
Why do Tax Brackets Change Every Year?
If you file taxes each year, you will have noticed that you may be in different tax brackets. A lot of people wonder why federal income tax brackets change each year.
Tax Brackets Change to account for Inflation
In the US, yearly changes to the personal income tax brackets result from adjustments to the dollar amounts of the:
- Federal income tax standard deduction and
- personal exemptions
for the taxpayer and dependents to account for inflation.
Do Federal Income Tax Rates Change with Tax Brackets?
Federal income tax rates can remain unchanged even when federal income tax brackets change.
Please refer to individual IRS publications for further information on federal income tax brackets.
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